Category: <span>China Freight News</span>

What is CFR?
CFR terms require the seller to arrange and pay for sea freight to the buyer’s indicated location. It also demands the seller to provide any necessary documentation the buyer will need to accept the goods from the carrier.
Once the vessel docks at the destination, liability rolls over to the buyer. The buyer is charged with unloading costs, import fees, duties, and any additional transportation expenses.

What is CIF?
Similar to CFR, CIF requires the seller to arrange sea freight but also necessitates the purchase of marine insurance to protect the order. The minimum agreed-upon insurance, any extra shipping costs, and mandatory documents are all handled and paid for by the seller.

CIF – Cost, Insurance, and Freight
Starting with CIF, it stands for Cost, Insurance, and Freight. In essence, it covers three factors; freight cost, risk transfer, and insurance.
1. Freight cost
Under CIF, freight costs are the seller’s obligation. Namely, the seller must arrange to deliver the goods to the destination port named in the contract, and pay the related costs.
2. Risk transfer
However, any potential risk is transferred from seller to buyer early during the shipment process; namely, when the goods are on board the shipping vessel. Such risks include the risks of damage or loss of the shipment.
3. Insurance
In terms of insurance, the seller is also obliged to pay for insurance cover. It is noteworthy, however, that said insurance is defined as the ICC’s tax payment amount, which is the minimum coverage.
Thus, if the buyer wishes to have more insurance protection, be it due to cargo value or other reasons, it will need to be arranged outside of basic CIF coverage. Namely, it will either need to be expressly agreed to with the seller in the transaction contract, or the buyer will need to make their own additional insurance arrangements.
Thus, to consolidate the CIF template;
The seller’s costs end at the export port and include export customs, freight, and insurance costs.
The buyer’s costs begin at the destination port and include import customs and transportation to their warehouse or other desired destination.
The transfer of risk occurs once the goods are on board the export ship.
Any additional insurance or other arrangements must be expressly agreed to in advance.

CFR – Cost and Freight
CFR, then, stands for Cost and Freight. Just like CIF, in essence, it also covers three factors; freight cost, risk, and insurance.

1. Freight cost
Freight cost remains the seller’s responsibility under CFR. Thus, the seller is obliged to arrange for and pay the costs and freight of goods to the destination port named in the contract.
2. Risk transfer
Also similarly to CIF, risks are also transferred from seller to buyer early – specifically, once the goods pass the rail of the shipping company’s vessel in the port of shipment. Such risks include the risks of loss, damage, or destruction of goods.
3. Insurance
However, while the two share the similarity of freight cost and risk transfer point, CFR differs from CIF in terms of the insurance. Under CFR, marine insurance is not among the seller’s obligations.
The seller is not liable for damages after the goods have been loaded on the export ship, and insurance costs affect the buyer’s inventory costs instead. Therefore, insurance will be the primary factor to consider when contemplating if CIF or CFR is better or preferable for either party.

What is a Bill of Lading?
A bill of lading is a document accompanying freight that states the agreement between the shipper and the carrier and governs their relationship when goods are transported. It details the cargo in the shipment and gives title or ownership of that shipment to the receiving party specified on the document. That party is usually the organization the cargo is being shipped to.

The bill of lading accompanying a shipment is signed by the carrier when it picks up the shipment. The signature acknowledges that the shipment is on board the carrier, whether it’s truck, rail, air, or ship. When it’s signed by the recipient, often referred to as the “consignee,” it confirms that the goods were received as described on the bill of lading. It also serves as proof of delivery.

What is a purchase order？
A purchase order is issued by the buyer (or client) at the start of a business transaction. It documents the client’s expectations in regards to products or services required, quantities, and price. The client sends this purchase order to the seller for approval. Upon approval, the purchase order becomes a legally binding document.

What’s a Purchase Order Number?
A purchase order number is a unique number found on the purchase order form. It is used only once, to distinguish a purchase order from all other orders. Most accounting software will automatically generate this number when a new invoice is being prepared. The number is referenced by both the client and seller throughout the buying transaction process, and is later used by the seller when it is time to send an invoice.

What’s a Purchase Order Number?
A purchase order number is a unique number found on the purchase order form. It is used only once, to distinguish a purchase order from all other orders. Most accounting software will automatically generate this number when a new invoice is being prepared. The number is referenced by both the client and seller throughout the buying transaction process, and is later used by the seller when it is time to send an invoice.

What is a Quotation?
A quote is created and issued before any work is done or products sold. It is a formal estimate that indicates the dollar amount for the products or services needed and it ensures that you only owe that amount (not a completely random number) for the products or services. It can be verbal or written.

A quote is often valid for 30 days from the date we issue it. But, it can be adjusted or revised upon a customer’s request. Issuing a quote does not change the inventory. This is because the work or product is not fulfilled yet. You can Request for Quote (RFQ) from different agencies and respond to your desired RFQ with a Purchase Order.

What is an invoice?
On the other hand, an invoice is a detailed list of products that have already been sold or services that have already been completed. Aside from the list, the invoice also includes dates as to when the products were sold or the services were completed, along with the dollar amount owed for each line item, and the total amount that is owed from the customer.

When you’re looking for work to be completed or products to purchase, a quote would come first, then the job would be completed, and an invoice would follow. After the amount on the invoice is paid, a receipt would complete the business transaction.

First the quotation, then the invoice
Let’s say you have a car repair business. The cold and wet UK winters can have an impact on any number of things in a vehicle. Dead batteries, weak spark plugs, not to mention the fender benders that can occur with just a little ice on the road.

The cost of repairs for a vehicle can quickly skyrocket, so it’s typically not common for someone to drop off their car to be fixed then pick it up and be presented with a hefty bill. In these situations, a quotation is the document needed.

A quotation provides your customer with an outline of what will need repairing and the total costs for the work to be done. The quote can then be approved, amended or refused by the customer before actual work commences.

Elements to include in your invoice or quotation
Document number
Document date
Quotation/Payment due date
Contact information
Itemized list of Products or Services
Dollar amount for each item line
Information about Taxes and Fees
Payment terms
Discount (if any)

There are several points of difference between a receipt and payment account and an income and expenditure account. These differences fall under the following categories:

(1) Nature

Receipts and Payments Account : It is a summary of cash and bank
It is a summary of current year transactions.
Income and Expenditure Account: It is a summary of current year
transactions. income and expenses.

(2) Commencement
Receipt and payment account: It must start with the opening balance of cash brought over from the preceding period (if any).
Income and expenditure account: It does not start with any balance.

(3) Recording

All cash and cheque receipts are recorded on debit side of receipts and payments account where as all cash and bank payments are recorded on credit side. In income and expenditure account all expenditure of revenue nature are recorded on debit side and all incomes of revenue nature are recorded on credit side.

(4) Capital And Revenue Items

There is no distinction between capital and revenue receipts and payments in receipts and payments account. All expenses and incomes of revenue nature are recorded on accrual basis in income and expenditure account.

(5) Items Included
Receipt and payment account: It may include receipts and payments relating to the period immediately before or after.

Income and expenditure account: It must include only income and expense items belonging to the period under review.

(6) Balance Sheet Requirement

Receipts and payments account is not required to prepare balance sheet. Income and expenditure account is required to prepare balance sheet.

(7) Adjustments

No adjustments are required in receipts and payments account. In income and expenditure account adjustments are made because it is prepared on accrual basis.

(8) Placing of Items
Receipt and payment account: Receipts are shown on the debit side and payments on the credit side.

Income and expenditure account: If it is prepared in accounts form, all revenue appears on the credit side and expenditures on the debit side.

(9）Balance of Account
Receipt and payment account: The difference between receipts and payments represents the balance of cash in hand or at bank (or bank overdraft at the closing date).

Income and expenditure account: The difference between income and expenditure represents either surplus or deficit balance.

What is an invoice?
An invoice is a payment request (either electronically or in physical form) issued by the seller after completing the sale of goods/services but before payment. Essentially, invoices are used to make sure your business gets paid. They include information about the transaction, such as details of work completed, payment terms, your company’s unique identification number, invoice date, and total amount due. If you or the business you’re invoicing is VAT registered, you’ll also need to include some additional information on your VAT invoice.

Invoices can be created using invoicing software or drawn by hand, and since timely payments play a key role in healthy cash flow, it’s important to have the invoicing process in place from the start.

How to write an invoice
Writing an invoice is actually fairly simple, but you must include some important elements in every invoice you create. These elements are one of the biggest differences between an invoice and a receipt; an invoice usually contains more information about a transaction and its terms than a receipt. These items include:

your company name, logo and contact information;
the customer’s name and contact details;
unique invoice number;
the date the invoice was created;
Payment due date and any other payment terms;
all acceptable payment methods;
A detailed description of all purchased goods and services, including price and quantity;
The total amount owed, including any taxes.
Since invoices call for payment and record transactions, all of this information is necessary to give customers exactly what they’re being charged for and what you can expect from compensation.

What is a receipt?
A receipt is a proof of transaction provided to a customer after the customer has paid for the goods or services. Receipts typically include information about the goods/services sold, including quantity, price, and discounts, and may also provide details of the payment method used in the transaction. However, it’s important to note that there are no specific legal standards for what’s on a receipt, which means it can actually be a simple handwritten note stating the amount paid.

In brick-and-mortar businesses, receipts are often printed on-site, while e-commerce businesses are more likely to send electronic receipts via email.

How to write a receipt
Creating receipts is even simpler than creating invoices because they are much less detailed. However, they still contain important information about the transaction. They don’t need unique identification numbers or customer information, but every receipt you issue should include:

your company name, logo and contact information;
sale date;
A detailed list of products and services sold;
the price of each product and service sold;
any discounts or coupons;
The total amount paid, including any sales taxes or fees.
Some receipts may also include payment methods, terms of sale, or your organization’s return policy, as this information may be useful to customers if they wish to return or exchange an item. Order errors and returns can have a huge impact on your customers and their business experience; providing as much detail as possible makes it easier for both of you to resolve any issues that may arise.

Difference Between Invoice and Receipt
Invoices and receipts are issued at different stages of the sales process and therefore serve different purposes. Invoices are issued before customers pay, while receipts are issued after payment is received. Invoice as payment request and receipt as proof of payment.
This also means that each file requires different information. Invoices should include details of products and services, while payment receipts only need to show the amount paid and the balance due. Both documents should be clearly marked “”Invoice”” or “”Receipt””.

How are invoices and receipts written differently?
Understanding how invoices and receipts are written and formatted helps highlight their differences.

Formatting invoices:
Invoices include details about both the seller and the buyer. Most follow a standard format with the vendor’s details, such as business name, trading address and phone number, in one of the top corners of the page. The same information is provided for the customer on the opposite side of the page.
Providing invoice numbers at the top of the page makes it easier to identify invoices and payments with your accounting team.
Invoices give specific details on the products or services bought. There should be a name and description along with the rate and the quantity purchased.
There are usually other details like payment terms, discounts for cash or early payment*, the date of the invoice, payment due date, acceptable payment methods, VAT (if you’re VAT registered) and more.

How to ship goods from China to Colombia?
Over the years, the shipping business from China to Colombia has developed air, sea, door-to-door, LCL and FCL services. This service allows us to ship from China to Colombia in the most affordable way and protects space availability when transporting your cargo.
We use our expertise to handle your shipments so you can build stronger relationships with your Chinese suppliers and customers in Colombia.

There are two ways to send goods from China to Colombia for exporters from China to Colombia as follows:
Shipping from China to Colombia
Air or Freight from China to Colombia

Sea and Container Shipping from China to Colombia
Are you looking to ship cargo containers from China to Colombia? Our shipping services from China to Colombia cover all major ports: Shanghai, Shenzhen, Ningbo, Qingdao, Guangzhou, Tianjin, Dalian, Xiamen, Hong Kong and Macau. Depending on your specific needs, we offer door-to-door, door-to-port and port-to-port shipping from China to Colombia.

With our door to door service you will be able to deliver your goods to different inland cities such as Bogota, Cali, Medellin, Bucaramanga and many others. Depending on the destination city, we will ship your cargo through the most convenient ports in Colombia, such as Buenaventura, Barranquilla, Cartagena.
The transit time for a container from China to Colombia is estimated to be 20 to 30 days from port to port. The number of days will vary depending on the desired service route and sailing schedule.

FCL – FCL Shipping from China to Colombia
We offer FCL sea freight for 20ft containers and 40ft containers to Colombia. If the goods being transported require different types of equipment, such as open top containers, flat racks, reefers or other equipment, our specialist equipment department will provide you with the best alternative.

Less than a Container Load – LCL Shipping from China to Colombia
We always offer LCL service from China to Colombia if the cargo cannot fill the whole container. When using this service, the applicable rate depends on the volume of the shipment. If the weight of the cargo exceeds the maximum allowable weight per cubic meter, the applicable rate is based on the weight.

Air Freight from China to Colombia
We have established a huge air cargo network, providing daily and weekly flights from major airports in China to any air destination in the world.

Our air freight services from China to Colombia provide a safe and reliable solution for all your air freight needs, including time sensitive and high value goods. Our shipping options include airport-to-airport, door-to-door, airport-to-door, and door-to-airport services, among others.

When shipping by air, our team of experts provides the most cost-effective solution and fastest route. We take care of your cargo from start to finish, overseeing every stage in the logistics chain, from when your cargo is picked up to delivery to its destination.

Depending on the route chosen, the average transit time for air cargo from China to Colombia is usually 3 to 7 days. This may be different when increased market demand results in a large volume of cargo being transported.

Air cargo charter from China to Colombia

Air cargo charter is the perfect solution when all other air cargo alternatives cannot meet your desired schedule or space capacity needs. Cargo leasing allows fast and economical transportation of your goods from anywhere in China to Colombia.

Latin America Cargo’s charter service gives you peace of mind when handling your cargo exports from China to Colombia. Some of the items we ship on charter flights include:
regular commercial cargo
high value commodity
Sensitive goods, such as dangerous, fresh or perishable goods
time-critical shipments
Medical Supply and Humanitarian Relief Aid
Heavy and oversized equipment
Spare parts for cars, aircraft and ships

Our partial and full charter options range from 10.000 lbs (5.000 kg) to 45.000 lbs (22.000 kg) and can be loaded on pallets, skids, crates or in bulk.

Door to Door Service from China to Colombia
One of the fastest ways to ship from China to Colombia is door to door service.
DDS or door-to-door service gives you peace of mind that your shipments from China to Colombia are worry-free.
DDPCH can pick up in China where you place your order and deliver it to your recipient’s doorstep in Colombia. So you don’t need to worry about customs clearance in China for exports and Colombia for imports.

Purpose of Packing Lists and Invoices
The purpose of the packing slip is to describe the contents of the package so that the shipper can state what has been sent and the recipient can verify that the same item has been received. The information on the packing slip furthers this by listing the product description and quantity along with any other information that may be useful to the receiving department of the business making the purchase – for example, weight or identifying information such as a SKU (stock keeping unit) number.
The purpose of the invoice is to tell the buyer’s accounting department how much money needs to be paid, and when. Invoice container for information related to this payment process, such as price and terms, such as whether payment is due immediately or within 30 days.

Packing List

A typical packing list will contain the following information:

order date
packing list
Purchase order number (if cross-linked)
Shipping Address
Contact information
Detailed list of physical items ordered
Detailed list of physical goods shipped
A detailed list of any items in the same order, but shipped separately
Itemized list of out-of-stock items that may need to be reordered
The number of each item listed
General size and weight information for each item
Stock keeping unit (SKU) number and/or Universal Product Code (UPC) for each item
Packing slips are usually printed out, placed in a shipping bag, and attached to the shipment by staff in the supplier’s shipping department to confirm when the order arrives at the buyer’s receiving department that everything in the order has been included. Inside. They may or may not double duty as a packing list and shipping label.

For international shipments, customs can use the packing slip and related invoices to estimate the total value of the shipment and charge accordingly.

Packing lists are generally not issued for services or service-based businesses because their “”product”” is intangible.

bill
A typical invoice includes the following information:

order date
Invoice number
Packing slip number (if cross-linked)
Purchase order number (if cross-linked)
Shipping Address
Billing Address
Contact information
Detailed list of physical items ordered
Detailed list of physical goods shipped
A detailed list of any items in the same order, but shipped separately
The number of each item listed
General size and weight information for each item
Stock keeping unit (SKU) number and/or Universal Product Code (UPC) for each item
Payment terms, including available payment methods
payment deadline
For prepaid orders, payment date, method and confirmation number (if applicable)
Region-specific information for tax purposes, such as Value Added Tax (VAT) ID numbers
Invoices are issued by the Accounts Receivable department and sent to the Accounts Payable team. Invoices are used by both parties to track payment due dates, verify payments, and provide documentation for company financial records.

The different roles of packing slips and invoices
1. Usage
If the buyer is not satisfied with the goods received, a packing slip should be included with the return request. Instead, an invoice is a long-term document that an individual or company can use to record purchases.
2. Action required
Packing slips are used to compare the quantity purchased to the quantity actually received, while invoices either require payment or show the cost of each item.

understand logistics
Logistics generally refers to the planning of transportation, warehouse management, inventory management, and handling within a warehouse before goods are ready to be shipped from one destination to another through distribution channels.

It is the management of the flow of goods between origin and destination, it involves the planning of goods transportation such as inbound transportation, outbound transportation, loading and unloading, production, packaging and inventory management, it checks the overall quantity and the balance of each item stored in the warehouse situation.

In other words, logistics deals with the overall strategy and planning of the movement of goods from warehouse to destination. The logistics management process is a key step in supply chain management, planning, implementing and controlling the flow of goods from the first step of raw materials to the delivery of goods to their destination.

Crown SDS is also a proud member of UK Logistics (formerly FTA), one of the UK’s largest business groups, supporting, shaping and supporting safe and efficient logistics.

understand distribution
Distribution is the process of making goods available to consumers or other businesses when needed. This includes the storage of goods, order fulfillment and packaging, and sometimes the handling of returns.

The key difference between logistics and distribution is that logistics has more to do with overall planning whereas distribution has more to do with the physical movement of goods from producers to users.

The goal of logistics is to improve internal functions through careful planning, while the goal of distribution is to find efficient ways to get goods to consumers in the most cost-effective and efficient way possible.

Goods distribution, which involves retrieving goods from storage locations and getting them ready for shipping with adequate packaging and correct documentation, is a critical step in supply chain management. It involves overseeing the movement of goods from the manufacturer or supplier to the point of sale by moving the goods from the source to the destination.

There are more factors related to logistics than distribution, involving the planning, coordination and management process involving goods and their resources.

Compare logistics and delivery
Honestly, I have my own preconceived ideas about what constitutes logistics and what constitutes distribution.

When I think of logistics, I think of freight management, transportation, carriers, and the overall planning and management of the movement of goods throughout the end-to-end supply chain. Nodes in logistics include suppliers, distribution channels, logistics service providers and customers.

When I think of distribution, I think of distribution centers, receipt of goods from suppliers, storage and internal processing of materials, fulfillment of orders from customers and channels, replenishment of goods to those channels, and processing customer returns.

In short, I would consider distribution to be a subset of logistics.

However, when you look at the definitions we have provided here from reputable sources, it’s honestly hard to discern any difference between the two terms.

The terms and concepts of planning, goods movement, material handling, inventory management, warehousing, etc. are basically the same in the definition of logistics and distribution.

What is Freight?
The term freight is typically for goods transport by train or truck. This is why we have the terms freight truck and freight trains. However, this is not always the case, as the term “air freight” is commonly accepted as correct usage. This is because freight is also the term used for the payment when certain goods are transported. To further complicate the matter, freight can also mean a cargo being transported via truck, train, plane, or ship. However, mail can’t be considered freight , as it is only used to describe commercial goods. Freight can denote many things. It may mean the product, merchandise, the amount payable, or the money charged. Cargo being transported may be referred to as freight if referring to both the goods and the money charged for their transport.

What is Cargo?
The term cargo is generally used for goods transported by ship or plane. We have cargo planes and cargo ships. Mail may also be called cargo. Used specifically for the goods only, cargo is not used to include the payment or the money being charged for the transport of goods. This means any product that is being transported can be called a cargo. Large cargo containers are usually used in transporting the goods called cargo. Cargo can be transported on pallets, in cargo handling nets, or by other means. The mailing services offered of parcels may also be known as cargo. Any item for consumption that is being transported can be referred to as cargo.

The Traditional Difference Between Cargo & Freight
In a traditional sense, the appropriate use of the terms cargo and freight depends on the vehicle carrying the goods in question.

When we refer to air freight, we don’t call the aircraft freight-planes — we refer to them as cargo planes. The same goes for ocean-going vessels it’s not a freight ship, but a cargo ship.

Conversely, trains carrying goods across the land are considered freight trains; you would rarely hear someone refer to one as a ‘cargo train.’ Long-haul trailers loaded with products are generally referred to as freight trucks.

So, traditionally speaking, ‘freight’ is products or goods moved overland via truck or train, whereas ‘cargo’ refers to goods moved overseas via ocean carriers or through air providers.

Still, even using traditional or contemporary definitions, the two terms share a few things in common. Both freight and cargo are used to communicate the transportation of products or goods, and they’re used almost exclusively in reference to commercial items.

One interesting exception to this rule is mail. The accepted term for mail – whether bundles of letters and correspondence or packages and parcels – is cargo. Mail is never referred to as freight, whether it’s transported by ship, plane, train, or truck.

In Summary, the Subtle Differences Between Cargo and Freight Are Well Worth Noting
In short, the term cargo is traditionally used to refer to commercial goods shipped by sea or plane, and mail of course, is always cargo.

Freight on the other hand, is cargo moved overland in trucks or trains. Plus it has the direct connection to the financial aspects of the transportation of goods.

As a shipper of your own products, better understanding of the differences between these terms will help you avoid confusion, and possible errors through miscommunication while talking to your freight forwarder or 3PL provider.

What is Cargo?
Cargo, also known as freight, refers to goods or produce being transported from one place to another – by water, air or land. Originally, the term “cargo” referred to goods being loaded onboard a vessel. These days, however, cargo is used for all types of goods, including those carried by rail, van, truck, or intermodal container.
Though cargo means all goods onboard a transport vehicle, it does not include items such as personnel bags, goods in the storage, equipment or products to support the transport carried onboard. Cargo transport is mainly for commercial purpose for which an air waybill, bill of lading or other receipt is issued by the carrier.

What is Logistics?
Logistics includes but is not limited to cargo. Complete logistics may include two core modules, one is transportation management in logistics and the other is warehousing and distribution services and even auxiliary modules such as sorting, which perform functions such as storage, transportation, loading and unloading, packaging, and processing of materials between production and consumption.

What is the difference between cargo and logistics?
First, modern logistics services company must master advanced management technology, and communicate with relevant units based on information exchange and information processing technology and equipment; traditional cargo forwarders mainly rely on cargo equipment, such as warehouses and fleets. In cargo forwarding business, the source of the information mainly depends on the customers themselves.

Second, cargo forwarding services usually take the customer’s instructions as the starting point. In comparison, this type of service is passive; while the goal of logistics services is to continuously meet customer needs and help customers formulate business strategies. So it is proactive and plays a guiding role.

Third, modern logistics services do not necessarily engage in specific cargo work. Its main task is to provide customers with transportation management services by selling advanced cargo integrated management technology to relevant customers, focusing on the overall transportation link.

Fourth, cargo forwarders only participate in cargo-related activities, but modern logistics services may also provide customers with global ordering and supply services. Therefore, modern logistics services have a wider scope and are more closely connected with enterprises in the supply chain.

Fifth, modern logistics service companies need a complete logistics network. How to establish and improve their own logistics network is more important than that of an enterprise that only engages in cargo forwarding. Without a perfect network, it is impossible to do a good job in supply chain management and transportation services.